China’s Auto Industry: A Double-Digit Drive to Dominance

China’s auto production and sales logged double-digit increases in the first five months of the year.

The China Association of Automobile Manufacturers (CAAM) said on Wednesday that the increase was a sign of vibrant consumption in the world’s second-largest economy.

“The country’s auto output totalled 12.83 million units during the period, up 12.7 per cent from a year ago, while auto sales rose 10.9 per cent to 12.75 million units.

“In particular, New Energy Vehicles (NEVs), production surged 45.2 per cent year on year to nearly 5.7 million units in the first five months, with sales up by 44 per cent year on year to 5.61 million units.

“NEVs accounted for 44 per cent of total new vehicle sales in China during the January to May period, according to the CAAM.

“The CAAM saw more vitality in the auto market, boosted by various factors such as the country’s stable economic growth, the consumer goods trade-in programme, and the introduction of new products by automakers.’’

The CAAM said that in an extended push to encourage consumption, China in January broadened the range of passenger vehicles covered under its trade-in programme.

This is aimed at expanding domestic demand and supporting the Chinese economy through equipment upgrades and trade-ins of consumer goods.

Wednesday’s data also showed that the country’s auto exports climbed 7.9 per cent year on year to 2.49 million units in the five-month period.

Notably, NEV exports soared 64.6 per cent to 855,000 units. (Xinhua/NAN)